The Australian Government, through the National Reconstruction Fund (NRF), has committed $50 million to support the ramp-up and underground transition of Liontown Resources’ Kathleen Valley Lithium Operation in Western Australia.
According to the government, the funding forms part of a $266 million institutional placement and is intended to strengthen Australia’s position in the global renewable energy supply chain by expanding domestic mineral refining capabilities and manufacturing capacity.
The government noted the investment is a key example of its Future Made in Australia agenda, which aims to build a more capable, productive, and resilient economy.
Date reported revealed lithium is a vital component in batteries used in electric vehicles and other high-tech devices, and global consumption has tripled since 2016, with around 87 per cent now used for EV battery production.
Liontown Resources, which supplies lithium to Tesla, Ford, and LG Energy Solution, employs more than 300 people and is working to advance downstream lithium processing in Australia.
Minister for Industry and Innovation and Minister for Science Tim Ayres said the NRF’s investment demonstrates the Government’s commitment to securing critical supply chains and strengthening manufacturing.
“With Australia’s critical and abundant natural endowments, like lithium, and skilled workers, Australia is well positioned to strengthen supply chains and become an indispensable part of the low carbon global economy,” Ayres said.
“This is what Future Made in Australia is all about—using public sector investment to crowd in private investment to make the most of this opportunity.”
Minister for Resources Madeleine King said the Government’s contribution will help advance a project that is also a leader in renewable-powered mining.
“Liontown at Kathleen Valley is a world-leading example of sustainable lithium spodumene mining that Australians should be proud to be a part of through this NRF contribution,” King said.
“To meet our net zero targets we will need more mining to build the solar panels, batteries and wind farms we need to reduce emissions.”
The government said the NRF will continue to support high-value projects across the nation through debt, equity, and guarantees.
